Freddie Mac posts $354M loss in 1Q; no dividend payment

FILE - In this July 13, 2008, file photo, shows the Freddie Mac headquarters in McLean, Va. Freddie Mac reports financial results on Tuesday, May 3, 2016. (AP Photo/Pablo Martinez Monsivais, File)

WASHINGTON (AP) — Mortgage giant Freddie Mac reported a net loss of $354 million for the first quarter, mostly due to losses it sustained on the investments it uses to hedge against swings in interest rates.

The government-controlled company said Tuesday the January-through-March loss mainly reflected accounting measures, while its business remained strong. The loss compared with net income of $524 million in the same period of 2015.

The company, based in McLean, Virginia, won’t pay a dividend to the U.S. Treasury next month. Freddie previously has paid $98.2 billion in dividends, exceeding its government bailout of $71 billion.

The government rescued Freddie and larger sibling Fannie Mae during the financial crisis in September 2008, when they veered toward collapse from losses on risky mortgages in the housing market bust.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s